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April 19, 2014 / 19 Nisan, 5774
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Posts Tagged ‘global economy’

Fisher’s Assessment: ‘The State of Israel’s Economy is Very Good’

Sunday, April 28th, 2013

Yoram EttingerStraight from the Jerusalem Boardroom #178, April 26, 2013:

The following summary of the April 23, 2013 address by Stanley Fisher, Bank of Israel Governor, highlights economic indicators which reflect the relative strength of Israel’s economy during the global economic meltdown.  These indicators have enhanced global confidence in the long-term viability of Israel’s economy.

Far from being isolated, Israel has become an attractive partner for global trade, an exciting site for astute investors and giant high tech companies.  Israel’s economic performance is praised by the three leading global rating companies and the International Monetary Fund.

Here is are the key points from Fisher’s remarks:

1.  “The state of Israel’s economy is very good, not excellent as it was in recent years.”

2.  In 2013, Israel’s economy is expected to grow 3.8% - more than most OECD countries. 1% growth will derive from offshore natural gas production, which will substitute more expensive imported energy, lower overall imports and production costs and expand employment.

3.  Global trade is expected to expand only 3.6% during 2013, which does not bode well for Israel’s exports (40% of Israel’s GDP).

4.  Unemployment – 6.5% – is the lowest in thirty years.  Unemployment among the 25-64 age groups is 5.7%.  Apparently, more young ultra-orthodox Jews and Arabs are integrated into the job market.

5.  In 2013, the interest rate – 1.75% - attracts overseas investors in State of Israel Bonds.  In 2012, inflation rate was 1.3%.

6.  In 2003, Israel was burdened by more than 5% budget deficit, which increased interest paid by Israel on international borrowing. The deficit was eliminated, when Israel adhered to a balanced budget policy, which facilitated Israel’s solid economic performance during the global economic meltdown.  However, the global crisis slowed down Israel’s economic growth, decreasing tax income, which increased the budget deficit to 4% in 2012.  The government goal in 2013 is a 3% budget deficit.

7.  During the 1970s and 1980s, the defense budget was over 20% of GDP.  The impressive growth of GDP has diminished the ratio of the defense budget – which is the largest share of the national budget – to 7% of GDP in 2012, the lowest since 1954!

8.  In 2003, the public debt to GDP ratio was 99.3%; in 2012 it was reduced to 73.4%.

Visit The Ettinger Report.

Israel’s Economy Endures Global Economic Meltdown

Sunday, January 6th, 2013

1.  Israel’s 2009-2012 economic growth of 14.7% leads the OECD countries, ahead of Australia – 10.7%, Canada – 4.8%, USA – 3.2%, Germany – 2.7%, France – 0.3%, Euro Bloc – 1.5% decline.  Israel’s growth was undermined by the stoppage of natural gas supply from Egypt, which requires the acquisition of more expensive sources of energy (“Israel Hayom”, Jan. 2, 2013).

2.  Israel’s 2012 economic growth, 3.3%, leads the OECD countries which average 1.4% growth, ahead of the US (2.2%), Canada (2%), Japan (1.6%), Brazil (1.5%), Germany (0.9%), France (0.2%), Britain (0.1% decline), Spain (1.3% decline) and Italy (2.2% decline), trailingIndia’s 4.5% and China’s 7.5% .  Israel’s growth per capita, 1.5%, exceeds OECD’s average of 0.7%.  Israel’s unemployment, 6.9%, is lower than the OECD (other than Germany’s and Japan’s) which averages 8%.  Israel’s private consumption increased 2.8%, compared with the OECD average of 1%.  Notwithstanding the global meltdown, Israel’s exports grew 1% at a time when most countries experience a substantial decline in exports (Globes Business Daily, December 31, 2012).

3.  Israel’s 2012 tourism – all time high of 2.9 million tourists, compared with 2.8 million in 2011.  American tourists lead the pack, ahead of Russia, France, Germany and Britain. Domestic tourism grew 3% (Ma’ariv, December 25).

4.  Australia’s $30BN Woodside Petroleum (WPL) is acquiring 30% of the rights of Israel’s Leviathan offshore natural gas field licenses for $696MN upon signing the agreement in February, 2013, $200MN upon launching exports, $350MN upon final decision to invest in liquefied natural gas export facilities, 11.5% royalties up to $1BN and $50MN for immediate oil exploration underneath Leviathan.  Woodside explores investment in additional Israeli offshore natural gas licenses (Globes, Dec. 4).

5.  The $1.6BN Minnesota-based Stratasys merged with Israel’s $1.4BN Objet (3D printers manufacturer), a week following the acquisition of Israel’s Retalix, by NCR, for $800MN. Objet’s market value before the merger was $634MN (Globes, Dec. 4).  The $10BN Wollingford, CT-based Amphenol acquired Israel’s Tel-Ad for $65MN; the US storage giant, EMC, made its 5th Israeli acquisition, More IT Resources, for $15MN.  EMC employs 1,000 persons in its Israeli research and development centers (Globes, Dec. 3).  Israel’s CrossRider was acquired by an overseas unidentified company for $37MN (Globes, Dec. 17).  The Menlo Park-based Greylock Venture Partners and the Palo Alto-based Norwest Venture Partners led a$12MN 1st round of private placement by Israel’s ScaleIO (Globes, Dec. 11).

6.  Google inaugurated its Israeli Start Ups Incubator, signaling its aim to expand its Israel operations (Globes, Dec. 11). The Holland-based Philips announced the establishment of a new research & development center in Israel, which will employ scores of scientists and engineers.  Philip’s research & development center in Haifa – which coordinates special applications developed in Israel the US, Holland and India – employs 600 persons, specializing in CT 3D imaging (Globes, Dec. 13).

7.  Electricite’ de France’s (EDF) renewable energy unit inaugurated its first three projects in Israel’s Negev – a $65MN investment.  EDF plans additional ventures in Israel, demonstrating its confidence in the viability of Israel’s economy (Globes, Dec. 19).

Visit The Ettinger Report.

Printed from: http://www.jewishpress.com/blogs/the-ettinger-report/israels-economy-endures-global-economic-meltdown/2013/01/06/

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